BofA sticks with ‘sell the last rate hike’ call

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Citing EFRP Global data, the strategists highlight that bonds and cash funds attracted inflows of $13.4B and $70.6B, respectively, in the week to Wednesday. On the other hand, stocks had inflows of $7.7B while ETFs added $16.1B.

Region-wise, U.S. stock funds attracted inflows for two straight weeks while European equity funds lost $2.6B.

“Q1 recession fears melt into Q2 Goldilocks greed,” the strategists wrote in a client note.

While they were correctly negative on stock returns last year, their projections for this year are yet to materialize as the stocks rally continues, fueled by AI optimism.

“Fed ain’t done with hikes…we stick with “sell the last rate hike” call,” the strategists doubled down on their prior projections.